Caterpillar Inc’s Q4 earnings beat estimates but revenue declines, shares down 4%

economictimes.indiatimes.com:

Caterpillar Inc. reported fourth-quarter earnings that exceeded analysts’ expectations but posted a decline in revenue. The company’s shares fell 4% in pre-market trading on Thursday, January 30, and remained over 4% lower after the market opened.

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Revenue and profit performance

Caterpillar Inc. recorded fourth-quarter revenue of $16.2 billion, reflecting a 5% year-on-year decline. According to the company, the drop in revenue was primarily due to lower sales volumes, driven by reduced equipment sales to end users and changes in dealer inventories. Operating profit for the final quarter of 2024 also fell by 7% to $2.924 billion.

The company reported a profit per share of $5.78 in the fourth quarter, up from $5.28 in Q4 2023. Adjusted profit per share stood at $5.14, surpassing analysts’ forecasts of $5.06. This figure excluded mark-to-market gains related to pension and post-employment benefit (OPEB) plan remeasurements, as well as a discrete tax benefit from a change in tax law concerning currency translation.

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Business segments’ performance

In its business segments, sales in Caterpillar’s Construction Industries division dropped 8% year-on-year to $6 billion.